Rising Construction Costs in Chennai: What You Need to Know in 2025

arunbalajee
May 16
2 min read

Cost of Labour Increased due to Migration and Aggregates costs increase due to supply restrictions by government are the major factors to Rising Construction Cost in Chennai

If you're planning to build a home or commercial space in Chennai this year, you're likely already aware of one pressing concern: rising construction costs. Whether it's a villa in ECR or a residential building in the city suburbs, the cost of construction in Chennai has seen a significant uptick in 2024 and early 2025.

As a trusted turnkey construction company in Chennai, at Construct It, we believe in transparency—and that includes helping you understand what’s driving up prices and how you can plan accordingly.

1. Key Factors Driving the Rising Construction Costs in Chennai 2025

📈 Raw Material Price Hikes

The backbone of any construction project—cement, steel, sand, bricks, and aggregates—has seen a sharp increase in pricing:

Cement prices have risen from ₹370 per bag to ₹420–₹450 in early 2025.
Steel (TMT bars) prices increased by over 15% YoY, currently hovering around ₹65,000–₹68,000 per tonne.
M-Sand and P-Sand, essential for plastering and concrete, have seen a 10–12% rise due to supply limitations and increased demand.
Bricks now cost ₹9–₹11 per piece, up from ₹6–₹7 in 2023.

These increases are largely driven by fuel price hikes, transport charges, and higher demand across Tamil Nadu and South India.

👷 Labour Cost Surge

Labour wages in Chennai have also increased, primarily due to:

Migration trends reducing the availability of skilled workers.
Government-mandated wage increases.
Higher demand in urban areas.

Typical daily wages for skilled masons have gone from ₹800–₹1,000 in 2023 to ₹1,200–₹1,500 in 2025. Making it the major factor for the Rising Construction Cost in Chennai 2025

2. Impact on Overall Construction Cost per Sq.Ft

In 2023, the average construction cost per square foot in Chennai was ₹1,800–₹2,200 for standard residential buildings. In 2025, this has climbed to:

₹2,300–₹2,800/sq.ft for mid-range construction.
₹3,000–₹4,000/sq.ft for premium villas with high-end finishes.

This represents an increase of 20–25% over the past two years.

3. How to Plan Your Budget in 2025

If you're building in Chennai in 2025, here are a few tips to manage costs effectively:

✅ Lock prices with your contractor early through transparent BOQs (Bills of Quantities).
✅ Choose alternative materials where possible (e.g., AAC blocks over red bricks).
✅ Work with experienced, reliable turnkey contractors like Construct It to avoid cost overruns and delays.
✅ Get a detailed project schedule and milestone-based payments.

4. Why Work with Construct It

At Construct It, we’ve delivered over 25 successful projects across Chennai with a strong focus on:

Transparent pricing.
On-time delivery.
Quality assurance from foundation to finish.

We continuously monitor market trends and raw material rates to help clients build smart, without compromising on quality.

Final Thoughts

Construction costs in Chennai are on the rise—but with proper planning and the right partner, your dream project doesn't have to exceed your budget. Reach out to us at www.constructit.in to get a customised estimate for your project in 2025.